Daily Management Review

The Number of New Buildings in the United States Reached a Record for 8 Years


08/18/2015


The number of houses, construction of which began in the US in July, rose up 0.2% from the previous month and amounted to 1.206 million in terms of annual growth, according to the Ministry of Commerce.



Chris Rank/Bloomberg
Chris Rank/Bloomberg
This is the highest figure in nearly eight years - from October 2007.

According to some data, the number of new buildings has jumped by 12.3% to 1.204 million in June. Previously, it was reported that rates increased by 9.8% to 1.174 million homes.  

Analysts, surveyed by Bloomberg, expected growth in the number of new homes in last month by 0.5% from the previously announced level to 1,180 million.

The steady increase in the number of jobs in the United States, low mortgage rates and the gradual easing of credit conditions have impacted positively on the demand for housing. This suggests that the housing market will make a more significant, than previously thought, contribution to US economic growth.

- The housing market is now a good part of the economy - believes economist Stan Shipley of Evercore ISI. - We have a good employment growth, low interest rates, relatively high level of consumer confidence. All of this contributes to the demand for housing.

Meanwhile, the number of building permits in the US in July fell by 16.3% compared to the previous month (the maximum reduction in seven years) and amounted to 1.119 million homes in terms of annual growth. Experts had expected a decline by only 8.2%.

The number of permits is an indicator of the houses construction volume in the near future.

source: bloomberg.com






Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat